Correlation Between Mainstay Epoch and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Pinestone at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mainstay Epoch and Mainstay Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch Equity and Mainstay Pinestone Equity, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Pinestone and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mainstay Epoch with a short position of Mainstay Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Pinestone.
Diversification Opportunities for Mainstay Epoch and Mainstay Pinestone
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Equity and Mainstay Pinestone Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone Equity and Mainstay Epoch is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mainstay Epoch Equity are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone Equity has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Pinestone
Assuming the 90 days horizon Mainstay Epoch Equity is expected to generate 0.89 times more return on investment than Mainstay Pinestone. However, Mainstay Epoch Equity is 1.13 times less risky than Mainstay Pinestone. It trades about 0.14 of its potential returns per unit of risk. Mainstay Pinestone Equity is currently generating about 0.09 per unit of risk. If you would invest 1,762 in Mainstay Epoch Equity on August 27, 2024 and sell it today you would earn a total of 642.00 from holding Mainstay Epoch Equity or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 84.18% |
| Values | Daily Returns |
Mainstay Epoch Equity vs. Mainstay Pinestone Equity
Performance |
| Timeline |
| Mainstay Epoch Equity |
| Mainstay Pinestone Equity |
Mainstay Epoch and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Pinestone
The main advantage of trading using opposite Mainstay Epoch and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Pinestone can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mainstay Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Vertible Fund | Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Sp 500 |
| Mainstay Pinestone vs. Franklin Government Money | Mainstay Pinestone vs. Aim Investment Secs | Mainstay Pinestone vs. American Century California | Mainstay Pinestone vs. Institutional Fiduciary Trust |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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